New York, NY (PRWEB) January 17, 2015 -- During the past five years, the Sporting Goods Stores industry has contended with the decline in consumers' leisure time. As consumers' leisure time is expected to decrease at an annualized rate of 0.3% during the five years to 2015, more individuals have struggled to incorporate sporting activities and fitness into their daily regimen, which has lowered demand for fitness apparel, footwear and other sporting goods. Moreover, slow growth in per capita disposable income has incited many budget-conscious consumers to purchase low-cost, low-quality industry products from foreign manufacturers. “This trend has curbed demand for private-label products, constraining industry revenue growth,” according to IBISWorld Industry Analyst Farrell McKenna. Furthermore, department stores and mass merchandisers have expanded their product portfolio to include sporting goods, thus intensifying competition for the industry. For example, mass merchandisers used their large operations to secure low-cost, supply-side contracts with sporting goods manufacturers, thereby enabling them to offer lower prices for sporting goods.
“As consumers have become more aware of the health merits of participating in sports and fitness activities, many consumers have demanded sporting goods, buoying industry revenue,” says McKenna. As a result, during the five years to 2015, industry revenue is expected to increase at an annualized rate of 0.4% to $5.7 billion, due to the increasing prevalence of foreign-made, low-cost sporting goods, which have slightly generated sufficient sales volumes to counteract their marked-down prices. In addition, industry revenue is expected to grow 2.3% in 2015, as rising per capita disposable income, coupled with more health-conscious consumers, stimulates demand for athletic products.
During the next five years, industry revenue is expected to grow, as strong consumer demand for gym, health and fitness clubs signifies more health-conscious individuals, who will require sporting goods for their fitness and sporting activities. As a result, industry revenue is forecast to grow during the five years to 2020.
For more information, visit IBISWorld’s Sporting Goods Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry retails new sporting goods, including bicycles, camping equipment, exercise and fitness equipment, apparel, footwear and other sporting goods and accessories. Products are sourced from sporting goods manufacturers and wholesalers and then sold to the general public via retail stores. Department stores, mass merchants and retailers that exclusively sell apparel are not included in this industry.
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Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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